Which of the Following Will Restore an Economy to Full

question 80

Multiple Choice

Which of the following will restore an economy to full employment if it is operating below full employment because of a decrease in net exports?

• A) An increase in the interest rate
• B) A reduction in the investment in the economy
• C) A decrease in the real exchange rate
• D) A reduction in the demand for goods and services in the economy

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Definitions:

CO₂

Carbon dioxide, a colorless, odorless gas produced by burning carbon and organic compounds and by respiration.

Midline

An imaginary line that divides the body into equal right and left halves.

Tasteless

Lacking flavor or not having any taste, often used to describe food or substances without a discernible taste.

Odorless

Lacking a detectable smell.